Today’s Market Summarised

NIFTY breaks its bearish trend and closes strongly in the green, powered by heavyweight stocks.

NIFTY opened the day at 18,160 with a small gap-up and tried moving up. But after moving more than 100 points in 30 minutes, resistance was taken and the index fell more than 160 points. The second half of the day was bullish and the index moved up sharply till the closing time. NIFTY closed the day at 18,268, up 143 points or 0.79%.

BANK NIFTY opened the day at 41,084 and tried to move up. But the index lost steam and even fell below till near the 40,800 mark. Results from Kotak Bank injected some positivity into the index, but it could not  break the morning’s high level. BANK NIFTY closed the day at 41,238, up 46 points or 0.11%. 

All sectoral indices closed in the green. NIFTY REALTY(+3.6%), NIFTY METAL(+2.6%), NIFTY AUTO(+2%) and NIFTY MEDIA(+2.6%) closed well in the green while others consolidated.

Asian markets closed in the green today. European markets are also trading in the green currently.

News Picks

Tata Motors(+6%) closed as top-gainer of NIFTY 50 after brokerage firm Jefferies raised target on the stock.

Metal stocks closed with bullishness with Tata Steel(+3.8%), JSW Steel(+2.9%) and Hindalco(+2.7%) closing in green.

HindCopper(+4.9%), Jindal Steel(+4.8%), SAIL(+3.8%) and National Aluminium(+2.1%) also gained.

4 banks closed in the top-losers of NIFTY 50. IndusInd Bank(-1.9%), ICICI Bank(-1.4%) closed well in the red while Axis(-0.38%) and HDFC Bank(-0.26%) were slightly in red. 

Meanwhile, Kotak Bank(+2.6%) closed among the top-gainers after publishing its Q2 results during market hours. Standalone Net Profit came out at Rs 2,030 crores, up 5% YoY, better than estimates.

Indus Towers(-2.4%) fell sharply from the gap-up opening with profit booking after posting a 38% YoY increase in consolidated net profit to about Rs 1,559 crore for Q2.

TechM(+2.5%) closed in the green after reporting its Q2 numbers with revenue up 7% at Rs 10,881.30 crore compared to last quarter. 

Tata stocks generally closed in the green, led by NIFTY 50 companies Tata Steel(+3.8%) and Tata Motors(+5.9%) and Tata Consumer(+2.5%). Tata Power(+5.4%), Trent(+2%), Indian Hotels(+0.78%), Tata Coffee(+0.9%), Tata Elxsi(+1.1%) and more also moved up.

IEX(+4.7%), IRCTC(+4.1%), MCX(+2.3%) and others gained back slightly after many days of fall.

Midcap banks AU Bank(+4.8%), IDFC First Bank(+7%), RBL Bank(+2.7%) and PNB(+2.1%) closed well in the green today.

In a big decision in ZEEL’s(+4.3%) favour, the Bombay High Court barred Invesco from calling an Emergency General Meeting and the stock flew up.

Canara Bank(-4.2%) reported Q2 Net Profit at Rs 1,330 crores, more than 3x from last year. However, profit booking was seen.

Paint Companies broke their losing streak, Asian Paints(+1.7%) & Berger Paints(+2.7%) were bullish near closing time.

Jindal Stainless(+15.2%) closed with bullishness after Q2 Cons Net Profit came out at Rs 408 crores, nearly 5x from last year.

Reliance(+2.2%) BP Mobility launches 1st Jio-BP branded mobility station at Navi Mumbai, Maharashtra. The stock closed with bullishness.

Markets Ahead

The results season is making the market move sharply up and down. If you watch the trendline which NIFTY had broken last day, the index moved back up above it near closing time. 

This last-minute move was sponsored by bullishness in Bajaj Finance and Bajaj Finserv along with ITC and who is set to announce results soon. Reliance also managed to move up well near closing time.

Bank Nifty was in a good consolidation mood in the day. Keep a continued watch on IDFC First Bank and AU Bank among others.

There is news that China locks down Lanzhou, over Covid cases. Lanzhou is the biggest producer of textiles, machine tools, and mining tools – so keep an eye on listed companies from this sector.

NIFTY IT looks like it is trying to take support as seen in the 1D charts. We are also seeing healthy buying returning to the mid and smallcap stocks indicating that the current bearish phase in the market is over.

How did Tuesday go for you? Expecting a gap-up after Bajaj Finance results tomorrow?

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